How to increase customer retention rate?

Upsail team


A business should work not only to entice contemporary clients but even to keep old ones. To track the latter’s numeral, the Retention Rate is essential – its high rate means that your organization is evolving and strengthening its position. This report will look at the RR, show how to calculate it, and discuss ways to increase this rate.

What is Retention Rate?

It is the capacity of a firm to maintain its regular clients for a particular period of time: a week, a month, six months, or a year.

It shows how long regular customers stay with the firm. It is essential because they are a more loyal audience for repeat sales, help increase profits, and draw new consumers through recommendations.

A high Customer Retention Rate means that your tactics are profitable and retain many clients.

Why Calculate Customer Retention Rate

Entrepreneurs often strive to attract new clients and forget those who have already completed purchases. The calculation is necessary because it is easier and more efficient to work with a ready-made database – you are not required to introduce the user to the organization and prove the production quality.

Three causes why CRR is a critical metric to keep an eye on:

  • Sales stability and revenue growth – regular customers, increase profits.

  • The minimum cost of interaction with consumers. Attracting new customers requires more investment in the communication system – to interest, lead, motivate to buy, and bring to a deal.

  • Word of mouth radio. Successful work with clients guarantees that your company will be suggested to mates and relatives.

How to improve Customer Retention Rate

Next, consider the instruments for customer retention.

Email Campaigns

Email newsletters are one of the most popular ways to remind you about your brand, attract customers with discounts and promotions, and increase their loyalty through useful regular mailings, letters from bonus programs, and congratulatory messages.

Email newsletters solve the following tasks:

  • Informing the client about products, discounts, bonuses, and loyalty programs.

  • Establishing feedback with consumers.

  • Maintain user engagement.

  • Gather consumer data to create personalized emails and convert leads into sales.

Increasing Retention Rates with a Chatbot

A chatbot is an assistant tool for businesses that helps to be closer to the client and make communication with the company even more convenient for him.

A chatbot can conduct surveys, collect data about service or product ratings, introduce a client to new products, help place an order, and notify about innovations and discounts. That is, constantly stay with him at a distance of one message in the messenger.

SMS mailings

SMS mailings allow you to quickly notify clients about discounts, orders, and new goods. To improve the Retention Rate of customers, set up personalized messages to remind the client about you and help bring him to the purchase.

Using SMS, you can congratulate customers on holidays and give bonuses – this is a congratulatory SMS with a personalized offer.

Push notifications

Push notifications help to inform clients about essential site events quickly: order status, new publications, or catalog updates.

And to keep consumers, you may set up a newsletter.

Social Media

To grow customers retention and loyalty:

  1. Present them to subscribe to your social networks.

  2. At the same time, do not forget to update the feed – this way constantly, there is less chance that they will lose interest.

  3. Show new products and company life, and display entertaining and valuable content.

Let’s see what content can be added to social networks to engage and retain the audience.

Use informational content so the user can find answers to their queries: learn about products, use cases, study expert opinions, and reviews of ordinary consumers.

Below is a post with a link to a laptop review, where the author talks about the product’s versatility. Such an article will help the user understand what functionality he needs and whether to choose this model.

Create sales posts so the client can understand the characteristics of the product, its advantages, and its characteristics and make a purchase decision.

Engage customers in discussions – for example, create a post with a survey so the audience can communicate, leave their wishes and share their impressions.

Add functional materials or inspiring collections of beautiful photos. Users will be able to study information, make reposts and save pictures.

The App

The application is always at the client’s fingertips – thanks to it, you can place an order fast and convenient. You can make a retail store or a wholesale product catalog and collect all educational material in one place.

CRM system and call tracking

CRM systems and call tracking help track the following actions:

  • Purchase history – products, dates, cost, payment methods, returns.

  • Sales dynamics by product.

  • The history of communications – calls to technical support and the sales department.

  • Personal data and interests of clients.

  • The work of managers – who and when communicated with the buyer.


In this article, we studied the Retention Rate. It is one of the important metrics that allow comprehending the quality of communication systems and creating relationships with regular customers.

The main theses of our article:

  • Study the behavior and interests of target audience segments and track their paths.

  • CRR is best viewed in terms of several indicators and checks the churn rate.

  • To build client relationships, use omnichannel – a CRM system in conjunction with call tracking, connecting email and SMS mailings, and push notifications.

  • If you have the opportunity to create an application for clients – do it.

  • Connect social networks and communicate with your subscribers.

  • Launch retargeting or remarketing to those customers who have already ordered goods from you.

  • Analyze feedback.

  • Be ahead – anticipate the desires and needs of users.

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